Elucidate why currency depreciation leads to an improvement

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How is the exchange rate determined in a freely floating rate system?

For few months, prior to your vacation trip to France, you find that the exchange rate for your U.S. dollar has increased relative to the Euro. If you were a U.S. citizen or resident, are you pleased? Explain.

Elucidate why a currency depreciation leads to an improvement in a countries balance of trade.

Reference no: EM1347276

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